For the past years, there has been a consistent upward trend for the country’s real estate industry and its constant growth seems to go on this 2015.
Developers and analysts have kept a positive outlook and have foreseen a better and exciting real estate industry in 2015. Major factors such as the ASEAN integration, investment upgrade, the higher demand on BPOs and OFWs are solidifying the real estate market this year.
The rising BPO industry fills up most office spaces in the country. These significant boost is all because of the recently achieved investment upgrade which gave confidence to multinational corporations that are looking for more investments and branching out in the country.
Hongkong and Singapore will be branching out to the Philippines as the ASEAN integration paves way for the office real estate sector in the country. This year, the main challenge for the office market would be keeping up with the demand when more international and ASEAN companies begin seeking properties in the country.
Last 2014, several corporate plazas and buildings are pre-sold and turned-over across the country. Currently, there is a fresh batch of supply being developed, and a weighty number of units will be turned over within the year. These business hubs are vital in spreading the economic growth in the country.
The commercial sector in real estate is expected to boom this year. The corporate bigwigs have continuously raised the bar by expanding and upgrading many of their world-class malls and hotels. International brands, on the other hand, are finding their way in the country. Much like the office real estate sector, the ASEAN integration will rake in more brands to invest and put up their branches within the country.
Other players are also planning to step up their game in 2015. The retail industry are planning to invest billions in the next five year. With the continuous growth on OFW remittances, the Philippines have stepped up in BPOs and consistent in economic growth.
The Chamber of Real Estate and Builders Association (CREBA), the country’s largest organization of key players in the domestic real estate industry, sees the Philippines grow further because of the ASEAN integration and the region’s increasing role in the global economy.
As the ASEAN integration will transform the economic landscape of the whole region, the demand for residential spaces adjacent to malls, retail centers, and other recreational spaces would rise since the elimination of tariffs on goods and services by a single ASEAN economy could drive consumers spend higher.
Currently, there is a sky-rocketing demand coming from low- to mid-income markets. Buyers from this bracket are purchasing properties as end-users, not as investors. Driving this demand are retirees and OFWs who are either planning to settle back in the country, or are purchasing for their family members.
The BSP recently announced that they will be releasing a housing price index in 2015 to prevent the property market from overheating which also support the increasing demand that keeps this sector flexible.
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